Procurement Management Tips

I keep seeing procurement teams blamed for being slow or reactive. But how often are we actually brought in early enough to make a real difference? But the uncomfortable truth is that most procurement problems are not capability problems. They are timing problems. When procurement is involved late, the work turns into cleanup. → Requirements are already locked → Suppliers are already “preferred” → Timelines are already unrealistic → Risk is already baked in → And procurement is asked to fix it anyway That is not strategy. That is damage control. I have seen the opposite work incredibly well. When procurement is involved early, however: → Tradeoffs are discussed, not discovered → Risk shows up while there is still room to act → Suppliers are shaped instead of rushed → Contracts are designed, not patched → AI supports decisions instead of amplifying chaos → And speed actually improves Early involvement does not slow the business down. It removes the rework no one talks about. If you want procurement to be strategic, stop treating it like a final checkpoint. Bring it in upstream. That is when procurement stops reacting. And starts doing the work it was hired to do. Repost 🔁 to share with your network or follow me, Marijn Overvest, for daily procurement inspiration. PS: Stop wasting hours on generic procurement training. Join Procurement Tactics for role-based learning journeys that turn ambitious teams into strategic partners — every minute counts.

Your Procurement Team Is Not a Fire Department🔥 Stop Celebrating Heroics and Start Preventing Fires. Procurement Excellence - FEB 2026 - Firefighting in procurement is the reactive, crisis-driven practice of addressing urgent, unplanned issues such as supply shortages, late contract renewals, or emergency purchases rather than following proactive, strategic processes. Are you constantly putting out fires in procurement? You’re not alone. While firefighting feels heroic; 🚫It drains resources 🚫It burns out teams 🚫It hides the real problem Here are 9 Common Sources of Procurement Fires: (Root Cause & how to extinguish them FOR GOOD): #1. Late PO Approvals ↳Bureaucratic workflows & unclear authority. ↳Extinguish: Streamline approvals; delegate thresholds; use digital workflows. #2. Supplier Shortages ↳Single-source over dependency & poor risk monitoring. ↳Extinguish: Diversify suppliers; implement real-time risk dashboards. #3. Invoice Mismatches ↳Manual data entry & poor PO-invoice reconciliation. ↳P2P automation; 3-way matching tech. #4. Maverick Spending ↳Maverick buying & unclear policies ↳Enforce P2P policy; user-friendly catalogs; spot-buy controls. #5. Talent Burnout ↳Chronic firefighting leads to high turnover ↳Automate low-value tasks; invest in upskilling #6. Cost Overruns ↳Scope creep & poor demand forecasting. ↳Robust change orders; cross-functional planning. #7. Emergency Purchases ↳Reactive planning & no buffer stock strategy. ↳Predictive analytics; safety stock optimization. #8. Supplier Performance Failures ↳Lazy SLAs & no performance tracking. ↳Clear KPIs; regular reviews; penalty clauses. #9. Contract Non-Compliance ↳Buried terms & poor stakeholder awareness. ↳Centralize contracts; automated alerts; regular audits. #Bonus I: Data Silos ↳Fragmented systems, no spend visibility. ↳Integrated tech stack; centralized data lake. #Bonus II: Specification Changes ↳Siloed stakeholder input, late-stage revisions. ↳Early stakeholder engagement; change control boards. Stop Spraying Water & fighting fires Fix the source. Root Cause Analysis (RCA) is your fire inspector. ✅️ 5 Whys Technique: Uncover layered failures. ✅️ Data Mining: Find spend patterns, delays, & exceptions. ✅️ Fishbone Diagrams: Map process, people, tech & policy flaws. Audit ONE fire this week. What’s the biggest fire in procurement function? 🔔 Follow Frederick for more procurement insights ♻️ Share solutions with someone in your network. #Procurement #ProcessImprovement #RootCauseAnalysis #ProcurementTransformation

Procurement used to be the focus only when there were supply shortages - but that's in the past! Throughout my career at Porsche AG, I’ve learned that some of the most business-critical functions often operate behind the scenes. Procurement is one of them. State-of-the-art Procurement is far more than just ordering or price negotiation. It’s also about foresight, resilience, innovation, sustainability, and responsibility. For today’s special supplement in the Handelsblatt I spoke about why procurement is now a strategic powerhouse in our industry. Here’s what I believe: 🚗 No car without parts – and no performance without reliable partners. Around 80% of the value creation at Porsche happens in our supply chain. That makes procurement essential – not just for operation, but for innovation and quality. 🌍 Resilience means understanding risk before it hits. We simulate extreme weather events, map cyberattack vulnerabilities, analyze global commodity flows, and evaluate tier-2 and tier-3 supplier structures. Transparency is our currency for resilience. 🔧 Success lies in collaboration. We don’t just “buy” from suppliers – we develop solutions together. From technical feasibility to logistics and sustainability, it’s a cross-functional effort from day one. 📍 Strong local supply chains matter. Especially mid-sized suppliers near our plants offer flexibility, speed, and deep expertise – an advantage that’s becoming more valuable in an increasingly fragmented world. 🤝 New thinking needs new partners. We’re expanding our supplier ecosystem to include start-ups and players from other industries, especially in fields like software, connectivity, and automation. It’s not just about parts anymore. It’s about ideas. I firmly believe: Procurement is a key driver of transformation and an essential function for commercial success. And the more interconnected, transparent, and collaborative we are, the stronger we will be as a company and as an industry. 👉 If you’re interested in the future of supply chains, I invite you to read the full interview in the Handelsblatt supplement – I’d love to hear your thoughts. #Porsche #DrivenByDreams

𝐈𝐧 𝐯𝐞𝐧𝐝𝐨𝐫 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧𝐬, 𝐟𝐚𝐢𝐥𝐢𝐧𝐠 𝐭𝐨 𝐤𝐧𝐨𝐰 𝐲𝐨𝐮𝐫 𝐧𝐮𝐦𝐛𝐞𝐫𝐬 𝐢𝐬 𝐚 𝐝𝐢𝐫𝐞𝐜𝐭 𝐭𝐡𝐫𝐞𝐚𝐭 𝐭𝐨 𝐲𝐨𝐮𝐫 𝐩𝐫𝐨𝐣𝐞𝐜𝐭’𝐬 𝐬𝐮𝐜𝐜𝐞𝐬𝐬. Preparation is the backbone of every successful vendor negotiation. When you understand your costs, set clear terms, and align on value, you’re building not just a contract but a reliable partnership. Here are some of the best practices we have learned for effective vendor negotiations at Venwiz: 1. 𝐃𝐚𝐭𝐚-𝐃𝐫𝐢𝐯𝐞𝐧 𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐬: Arriving at project cost estimation through detailed cost analysis sets a solid foundation. Use methods like Zero-Based Costing for detailed estimations, apply inflation adjustments to the last purchase cost, or use weighted averages from multiple quotes. When vendors see that you know your numbers, it builds credibility and respect, setting the stage for more productive discussions.     2. 𝐒𝐞𝐭 𝐂𝐥𝐞𝐚𝐫, 𝐀𝐜𝐡𝐢𝐞𝐯𝐚𝐛𝐥𝐞 𝐓𝐞𝐫𝐦𝐬: Define concrete targets for service levels, timelines, and ceiling costs. A well-defined service agreement—including specifics like payment schedules, quality & safety standards, and warranty terms—establishes a strong foundation. This clarity avoids misunderstandings and creates a structure that supports efficient, respectful negotiations.     3. 𝐋𝐨𝐨𝐤 𝐁𝐞𝐲𝐨𝐧𝐝 𝐁𝐮𝐝𝐠𝐞𝐭 𝐭𝐨 𝐅𝐨𝐜𝐮𝐬 𝐨𝐧 𝐕𝐚𝐥𝐮𝐞: Budget matters, but so does value alignment. Quality vendors look for clients who understand this. Show commitment by offering flexibility in terms, such as adjusting payment timelines or considering future projects. If a vendor can provide an extended warranty or additional service terms, it may justify a slightly higher costs if it aligns with your project’s goals.     4. 𝐇𝐚𝐯𝐞 𝐚 𝐁𝐀𝐓𝐍𝐀 (𝐁𝐞𝐬𝐭 𝐀𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 𝐭𝐨 𝐚 𝐍𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐞𝐝 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭): Always have a clear fallback plan. A strong BATNA isn’t just a backup; it’s a powerful leverage tool that ensures you’re negotiating from a position of confidence rather than necessity. In vendor relationships, the best negotiations are built on value, transparency, and mutual respect. When both sides understand the stakes and goals, you pave the way for enduring partnerships that drive long-term results. 𝐖𝐡𝐚𝐭 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐡𝐚𝐯𝐞 𝐲𝐨𝐮 𝐟𝐨𝐮𝐧𝐝 𝐦𝐨𝐬𝐭 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐢𝐧 𝐛𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐬𝐭𝐫𝐨𝐧𝐠 𝐯𝐞𝐧𝐝𝐨𝐫 𝐫𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬𝐡𝐢𝐩𝐬? 𝐋𝐞𝐭’𝐬 𝐥𝐞𝐚𝐫𝐧 𝐟𝐫𝐨𝐦 𝐞𝐚𝐜𝐡 𝐨𝐭𝐡𝐞𝐫—𝐬𝐡𝐚𝐫𝐞 𝐲𝐨𝐮𝐫 𝐭𝐢𝐩𝐬 𝐛𝐞𝐥𝐨𝐰! #Venwiz #CapEx #Procurement

If you think involving procurement early is optional, you’re building in risk and cost by design. The way your teams commit to suppliers before looping us in, the way speed is prioritised over commercial thinking, the way “just get it done” trumps “get it done right” that’s the culture many procurement teams operate in. We can drive value, reduce risk, and move fast, but not if we’re brought in after the decisions are already made. At that point, we’re not strategic partners. We’re paper-pushers trying to fix problems we didn’t create. If you’re seeing delays, poor supplier performance, or commercial surprises, don’t just ask what Procurement is doing about it. Ask what behaviours are being tolerated, rewarded, or repeated before we’re even involved. Strategic Procurement doesn’t slow things down. Getting it wrong because you skipped us? That does.

The $150k Project I Almost Lost – And How I Saved It in the Final Hour One time, I was leading a project to build a custom payment system for a globally recognized retail brand. Everything seemed to be running smoothly- until it wasn’t. Scope creep, misaligned teams across time zones, and a surprise vendor fee threatened to derail the entire project. I knew I had to act fast. And I use the same Project Rescue Framework every time: Rescue Technique #1: Scope Reprioritization How it works: - Identify non-critical features that can be pushed to Phase 2. - Hold an emergency steering committee to align on priorities. - Focus the team’s effort on delivering the core features first. Rescue Technique #2: Vendor Leverage How it works: - Source quotes from alternative vendors, even if you plan to stick with the original. - Use competitor pricing to renegotiate terms with your current vendor. - Cut down unnecessary licensing fees without impacting quality. Quick note: Don’t threaten to switch vendors hastily – that can burn bridges. A calm and strategic renegotiation works far better. Rescue Technique #3: Time Zone Synchronization How it works: - Avoid relying solely on email updates. - Set up early-morning and late-night syncs with global teams. (not lengthier ones though) - Ensure daily check-ins across regions to avoid communication gaps. If you avoid waiting for the next business day and maintain real-time syncs, you’ll get faster progress Easy, right? Rescue Technique #4: Stakeholder Transparency How it works: - Communicate risks as soon as they arise. - Always Present options, not just problems. - Align on solutions with full stakeholder buy-in. Rescue Technique #5: Budget Guardrails How it works: - Always leave buffer room in the budget for unexpected costs. - Track expenses weekly, not monthly. - Keep stakeholders informed about budget fluctuations early. That’s it! Let me know which one of these techniques you found most helpful in the comments. Happy to dive deeper into any of these strategies in a follow-up post.

🎯 Procurement’s Role Beyond Buying. Most people still think procurement is all about buying things at the lowest cost. But those of us in the field know, that’s just the tip of the iceberg. Today, procurement is less about purchase orders and more about purpose-driven partnerships. In my career, I’ve seen how procurement has evolved from a transactional support function into a strategic business driver. We’re no longer just negotiating prices, we’re shaping how organizations operate, innovate, and grow sustainably. Our role today extends far beyond cost control. We manage supplier risk, ensure compliance, foster innovation, and align sourcing decisions with the company’s long-term vision. A great procurement professional now asks: > How can this supplier strengthen our resilience? > How does this decision impact sustainability goals? > What innovation can this partnership unlock for the business? Procurement today is about creating value, not just cutting costs. It’s about building trust, enabling growth, and delivering impact that lasts. When procurement teams step beyond the “buying” mindset, they become true strategic partners not just to the business, but to the future.

🚀 Cost Saving Strategies in Procurement 🚀 true cost savings are not just about negotiating a lower price — they come from strategic sourcing, smarter contracting, and efficient processes. 🔹 1) Sourcing & Vendor Strategies • Vendor consolidation: Bundle volumes with fewer suppliers to unlock scale discounts and stronger partnerships. • Global/alternate sourcing: Explore imports or regional suppliers for competitive pricing and risk diversification. • Multi-vendor strategy: Keep healthy competition alive and avoid supplier dependency. • Long-term contracts / rate agreements: Hedge against inflation and lock prices for stability. • Reverse auctions: Use e-bidding to drive competitive pricing transparently. • Supplier development programs: Support suppliers in cost reduction (lean practices, technology, financing) so benefits flow back to you. This 🔹 2) Negotiation & Contracting • Total Cost of Ownership (TCO): Look beyond upfront cost to include maintenance, warranty, spares, disposal, and lifecycle cost. • Payment terms optimization: Balance cash flow with early payment discounts or extended credit. • Standardization of specifications: Avoid over-engineering and unnecessary customization that inflates costs. • Volume commitments: Offer consistent demand in exchange for better pricing and service. 🔹 3) Process Efficiency • Procurement automation (ERP/PO automation): Reduce administrative effort, save time, and minimize errors in repetitive buys. • Demand planning & forecasting: Align with business needs, avoid stockouts, and reduce urgent “premium” purchases. • Contract compliance monitoring: Prevent leakage and enforce negotiated terms to maximize realized savings. 💡 Procurement cost savings aren’t just about lowering spend — ✔ Improve cash flow & working capital ✔ Strengthen supplier relationships ✔ Enhance resilience in uncertain markets ✔ Build a competitive edge for the business #Procurement #SupplyChain #CostOptimization #StrategicSourcing #Negotiation #ProcessExcellence

As Tariffs Disrupt the Flow, 4 Supply Chain Moves Every Executive Should Make: Tariffs aren’t just a trade issue, they’re a leadership one. As an executive coach, I work with leaders navigating disruption to become more effective in how they think, decide, and lead so their organizations and teams perform at the highest level. Right now, global supply chains are under pressure from shifting tariffs, reshoring mandates, and geopolitical realignment. What used to be a smooth, just-in-time operation is now a daily exercise in adaptability. Here are four strategic shifts every executive should be considering: 🔍 1. Audit Hidden Dependencies Most leaders track Tier 1 suppliers—but disruptions often originate in Tier 2 or Tier 3. Map the full supply chain to understand where risks lie beyond what’s immediately visible. 🌎 2. Go Beyond “China-Plus-One” Relocating from China to Vietnam or Mexico may ease tariff exposure, but true resilience requires a multi-regional approach. Diversify sourcing and distribution to withstand geopolitical shocks. ⚙️ 3. Align Procurement with Enterprise Strategy It’s no longer just about cost. Factor in tariffs, political stability, and fulfillment risk. Ensure procurement and strategy functions are working in tandem—not in silos. 🧠 4. Embrace Supply Chain Intelligence AI tools and digital modeling can help you simulate scenarios and plan proactively. Today’s smart supply chains aren’t static—they’re dynamic, data-driven, and decision-ready. Executives who succeed in today’s environment are the ones who build resilience into their operations and clarity into their leadership. Tariffs may be the current headline, but adaptability, foresight, and strategic alignment are the lasting differentiators. If you are looking for a partner to support you in making your supply chain and your leadership more future-ready, let's connect.

Here’s my simple checklist for every #CPO thinking about people-centred leadership in the age of AI. AI will change procurement. No serious leader can ignore that. But the best procurement leaders will not be the ones who simply buy more tools. They will be the ones who help their people work with more confidence, better judgement and clearer purpose. Here is how I would approach it. 1. Start with the team, not the technology Before asking, “which AI tool should we use?” ask: Where is the team struggling? Where are they wasting time? Which decisions are slow? Where is knowledge trapped? AI should solve real work problems. Not create another system people are forced to manage. 2. Protect human judgement Procurement is not only data and process. It is negotiation, risk, supplier relationships, ethics, timing and commercial judgement. AI can summarise, compare, draft and analyse. But people must still own the decision. 3. Be honest about change People are not afraid of AI because they dislike innovation. Many are worried about relevance, job security and the future of their role. A people-centred CPO should speak honestly about that. Some tasks will change. Some skills will matter more. Some old ways of working will disappear. That conversation must be handled with respect. 4. Reskill before you restructure If AI saves time, the first question should not be: “How many people can we remove?” The better question is: “What higher-value work can our people now do?” Supplier strategy. Market intelligence. Contract risk. Innovation. Commercial problem-solving. That is where procurement should be moving. 5. Set clear boundaries Every team needs to know: What AI can do. What AI cannot do. What data can be used. What decisions need human approval. Who is accountable when something goes wrong. Without clear boundaries, AI creates speed without control. 6. Measure better outcomes, not tool usage Using AI is not the achievement. Better procurement is the achievement. Measure what matters: Faster cycle times. Better supplier insight. Stronger negotiation preparation. Less manual work. Improved compliance. Better risk visibility. Stronger decisions. 7. Keep procurement human AI can make procurement faster. It can make procurement more informed. It can make procurement more efficient. But leadership must keep procurement human. Because at the centre of procurement are people. People who make decisions. People who manage suppliers. People who carry risk. People who protect value. The future CPO will need to be commercially sharp, digitally aware and deeply human. AI may change the tools of procurement. But leadership will still determine whether people trust the change. We have build something an exciting solution - OpenTender.AI #AI #Leadership #Procurement